Capital Budgeting Analysis - Use the information below toprepare for cash flow analysis in a table for bothscenarios
Please create your table from Colume L and keep thisstatement here as it is.
You must show the analysis and results from both scenariosbased on your cash flow analysis table and make yourdecision
Decision without data support will be given 0points.

Micro-Technologies is a Bio Tech research firm that isconducting research on a cure

for Aids. Their sole current source of revenues is fromthe sale of research data that they

have collected about the virus (Ultimately, they arehoping to find an Aids vaccine that

will be worth billions, the research data they areselling is only being to finance

continuing research). The firm is considering thepurchase of an electron microscope that

will cost $2,000,000, and have a useful life of fiveyears. At the end of the five years, the

microscope will have an estimated salvage value of$500,000. If the firm purchases the

scope, there will also be an associated maintenance costof $50,000 per year. One

possible alternative is to lease the equipment for thesame period of time for $375,000 per

year, with all maintenance assumed by the lessor. Forsimplicity, treat lease payments as

if due at the end of the year.

If the before project EBIT is $500,000 per year, theborrowing rate (before-tax is

12%), and the tax rate is 30%, what should the firmdo?